SAN JOSE -- Altera Corp. today announced it will lay off 152 people, or 7% of its workforce, as part of a restructuring of its operations in the current industry downturn. The supplier of programmable logic also said it was planning to take a one-time, pre-tax charge of about $115 million for excess inventory in second quarter.
In addition, Altera said it has reduced executive officer pay by 10% and postponed employee merit increases. As a result of these and other recently actions, Altera said it expects cost savings of about $6 million per quarter, beginning in Q3 of 2001.
Altera reaffirmed its previous projection of a 25% sequential drop in revenues for the second quarter from $287.4 million in Q1. The company said it continues to see signs of stability in North America markets, but international business remains soft.
"As we continue to execute on our business strategy, the current business environment requires us to be cautious and make some pragmatic, yet difficult decisions," said John Daane, president and CEO of Altera.
The San Jose company said it will take $10 million charge in connection with its layoffs and restructuring. The inventory and restructuring charges are expected to total $105 million on an after-tax basis.
Altera is scheduled to post its second quarter results on July 23.